The offshore yuan strengthened past 7.06 per dollar, hitting its highest level since October 2024, supported by a strong central-bank fixing and improving sentiment toward the currency. The People’s Bank of China set the daily midpoint at 7.0754 per dollar, its firmest level since mid-October 2024, reflecting the central bank’s commitment to maintaining currency stability. Adding to yuan’s appreciation, several investment institutions expect the yuan to strengthen further next year, potentially pushing the currency past the psychologically significant 7-per-dollar threshold for the first time since 2023. Externally, the yuan found support from a weakening US dollar amid rising expectations of an upcoming Federal Reserve rate cut. On the economic front, a private survey showed China’s Composite PMI easing to a four-month low of 51.2 in November. The services sector slowed to a five-month low of 52.1, while the manufacturing gauge slipped to 49.9, its weakest reading in four months.
